The questions we at Aspire2 often get asked are “What does a financial adviser do?” and is financial advice worth the investment?"
Whether you're new to financial planning or looking to refresh your strategy, in this article, we provide an overview of how financial advice works and some point you should consider before you see a financial advisor.
What is a financial adviser, and what do they do?
To put it simply, a financial adviser is someone who works with you to help you manage and grow your wealth.
While investing is a common part of this role, it’s just one piece of the puzzle.
Financial advisers help set the foundation for your long-term financial health by providing insights into areas such as retirement planning, superannuation, insurance, estate planning and investment advice.
A financial planner is someone who can provide tailored advice, built around your unique circumstances, life stage, and goals.
This personalisation is key because financial planning is not the same for everyone.
Each person, regardless of age, gender, or financial background, can benefit from tailored financial strategies and these strategies vary for everyone.
Is it worth paying for a financial adviser in Australia?
One of the other common questions you might hear is: “Are financial advisers worth it?” The answer depends on your goals and what you want to achieve. Research by the Financial Advice Association Australia (FAAA) found that 4 out of five people who are using a financial adviser are confident of solving most challenges. Furthermore, 80% are less worried about money since receiving financial advice.
Financial advice is often viewed as something reserved for the wealthy, but the truth is that it can benefit anyone who wants to make the most of their resources, no matter the starting point.
A financial adviser saves you time and money by guiding you through complex decisions, from tax savings to investment choices.
Rather than juggling all these aspects alone, your adviser handles them efficiently, allowing you to focus on other areas of your life.
This way, the advice you receive isn’t just about potential financial gains; it’s about freeing up your time and avoiding costly mistakes.
How do I know if I need a financial adviser?
If you’re asking yourself, “Do I need a financial adviser?,” think about how much time, effort and knowledge required to manage your family’s financial future.
A good financial adviser doesn’t only give “general advice” based on market trends but they should look at your entire financial landscape, and help you build a strategy that’s right for you.
Consider some of the key milestones in your life. These could be starting a family, buying a home, planning for retirement, or even navigating inheritance.
Each of these points in life comes with financial challenges that can benefit from professional guidance. An adviser steps in with research-based recommendations tailored to these needs, ensuring that each decision aligns with your goals.
The role of a financial planner in everyday life
As a financial adviser, my goal is to help clients manage both the good and the difficult financial moments in life.
An important aspect of our work is adjusting strategies over time if required.
Whether it’s responding to changes in the market or adjusting your retirement plan as you get closer to your goal, financial planning requires flexibility.
Financial advice isn’t a one-time event; it’s an ongoing relationship. We stay in touch with clients to ensure we’re on track and making any adjustments necessary to fit evolving circumstances. Think of it as having a financial check-up—each review ensures that you’re on a healthy track towards your goals.
Getting ready to meet a financial adviser
Providing your adviser with accurate details about your financial situation allows them to tailor advice specifically to your needs.
An adviser will typically require information about the following:
your personal details – including your age, employment, and relationship status
your assets – such as property, savings, superannuation, shares, and other investments
your debts – including any mortgages, loans, or credit card balances
your income sources – from wages, investments, or government benefits
your regular expenses – a budget planner can help you compile these
your insurance coverage – policies and coverage amounts
your estate plans – including wills or power of attorney arrangements.
Understand what your adviser offers
In your initial meeting, you should look to discuss:
scope of advice – what areas are included and what are not
costs and payment options – make sure you’re clear on fees and any payment choices available
information sharing and updates – how and when they’ll provide you with updates
permission and consultation – when they’ll seek your input and when they’ll require your authorisation
authority level – the degree of access they’ll have to manage your investments
review frequency – how often you’ll meet to review your financial plan’s progress
To understand your comfort with risk, your adviser will likely ask you to complete a risk profile questionnaire. This helps them recommend suitable investments for your situation and goals.
Financial advice - an investment in your future
Professional financial advice is about much more than financial gain.
A good adviser is like your sounding board, someone who will listen to your aspirations, help you make informed decisions, and provide guidance at every turn. At Aspire2Wealth, we focus on more than just the numbers.
We provide a roadmap to help you navigate life’s many financial questions, giving you peace of mind that you’re moving in the right direction.
So, if you’ve been wondering, Is it worth it? I encourage you to book a check-up with one of our team.
A consultation with a financial adviser can open doors to financial stability and growth, taking you from where you are today to where you want to be tomorrow.
This content contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser (Aspire2 Wealth Advisers, 08 9322 7028), and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Please contact us if you want more information.
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